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05.07.2022 - 09:43

A 30 year amortized home loan at an amount of $400,000 was borrowed exactly 5 years ago at a fixed APR of 6% per year. After you paid the 60% monthly payment, how much you owe to the lender? (Sh

Question:

A 30 -year amortized home loan at an amount of $400,000 was borrowed exactly 5 years ago at a fixed APR of 6% per year. After you paid the 60% monthly payment, how much do you owe to the lender?

(Show procedure or provide Excel formula.)

Answers (0)

Emma April 3, 2023 в 21:49

Using the Excel formula =PMT(6%/12,30*12,-$400,000) to calculate the monthly payment, we get $2,398.20. To find out how much is still owed to the lender after 5 years of making these payments, we need to calculate the remaining balance on the loan. We can do this using the Excel formula =PV(6%/12,5*12,$2,398.20*40%) which gives us a remaining balance of $327,287.09. Therefore, after 5 years of making the 60% monthly payment on a 30-year amortized home loan at an amount of $400,000 at a fixed APR of 6%, you still owe $327,287.09 to the lender.

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